The corporate heads of the video chain store have been scratching their heads recently trying to figure out how to approach a quickly changing market.

And now the Starbucks of video rentals may be following the coffee giant's lead and closing stores across the country to deal with the change, according to a regulatory filing reported by the Biz Journals.

The paper reported Blockbuster may close up to 960 unprofitable stores by the end of 2010 to refocus itself.

The Dallas-based company is struggling to deal with the likes of Los Gatos-based Netflix and the Redbox kiosk machines, which rents DVDs for $1.

Blockbuster has long been reacting to both Netflix and Redbox's leads. The mega chain started an online movie renting system years ago to compete with the popular Netflix, which recently expanded its inventory and began streaming movies directly to users' computers and Tivos.